How to buy good quality I-RECs
Purchasing International Renewable Energy Certificates (I-RECs) is an effective way to support global decarbonization and meet corporate sustainability goals. However, not all certificates are created equal. Here’s a comprehensive guide to help you procure I-RECs that deliver genuine environmental value.
1. Understand the I-REC Standard
The I-REC Standard is a global tracking framework that facilitates the registration, issuance, trading, and redemption of renewable energy certificates. Key features include:
Accredited Issuers: Independent organizations in each country register renewable energy facilities and issue certificates based on verified, metered output.
Unique Tracking: Every I-REC has a serial number to prevent double-counting or reuse.
Central Registry: Managed by Evident under the International Tracking Standard Foundation, the global registry ensures transparent tracking of issuance, transfer, and retirement.
Understanding this system is essential to navigating the I-REC market effectively and confidently.
2. Verify Issuer Accreditation and Registry Integrity
Quality starts with credibility. Before purchasing I-RECs, confirm the following:
The issuer is accredited by the I-TRACK Foundation.
The registry platform offers real-time visibility into the certificate’s status.
Retirement (cancellation) is final and irreversible, ensuring the certificate cannot be resold or reused.
Due diligence in this area helps avoid exposure to certificates from regions with inadequate oversight or audit mechanisms.
3. Prioritize Additionality and New Capacity
Additionality refers to the principle that your purchase contributes to renewable generation that would not have occurred otherwise. To ensure this:
Prefer Recent Vintages: Focus on certificates from projects commissioned within the past 12–24 months. Older vintages may reflect previously allocated generation, reducing real-world impact.
Request Documentation: Ask for evidence showing how I-REC revenues are reinvested into facility operations or expansion.
Look for Third-Party Labels: Certifications like EKOenergy add stricter sustainability, social, and environmental criteria, reinforcing the credibility of the project.
4. Balance Technology and Geography
Consider the environmental, social, and regional context of your purchase:
Technology Type: Solar, wind, hydro, and bioenergy projects each carry different lifecycle impacts and benefits.
Grid Mix Context: Purchasing from regions dominated by fossil-fuel generation (e.g., parts of Southeast Asia) results in a higher displacement of carbon emissions.
Geographic Portfolio: If your operations are global, match I-REC purchases with your regional footprint to strengthen the legitimacy of your sustainability claims.
5. Monitor Pricing and Market Dynamics
I-REC prices fluctuate based on supply, demand, regulation, and project performance. To optimize your strategy:
Negotiate Volume Discounts: Entering into multi-year or bulk agreements can reduce per-certificate cost and improve supply reliability.
Understand Contract Types:
Spot Contracts provide immediate delivery at market rates.
Forward Contracts allow fixed-price agreements for future delivery, offering budgeting certainty.
6. Ensure Transparent Retirement and Documentation
To claim the environmental benefit of I-RECs, they must be properly retired. Make sure that:
The seller provides official retirement confirmation with registry reference numbers.
Documentation includes project metadata (location, technology, commissioning date).
Records align with your reporting frameworks such as CDP, RE100, or GHG Protocol.
You securely retain electronic certificates and retirement proofs for future audits.
7. Align with Reporting Standards and Sustainability Goals
Integrate I-REC procurement into your broader environmental strategy:
Scope 2 Compliance: I-RECs help meet the GHG Protocol Scope 2 Guidance requirements for market-based electricity accounting.
ESG Reporting: Certified I-RECs provide a credible foundation for renewable energy disclosures in your annual ESG, CDP, or investor reports.
Corporate Targets: Plan purchases based on short- and long-term decarbonization goals, ensuring proper alignment with target years and retirement cycles.
8. Use Trusted Marketplaces and Expert Advisors
The I-REC market can be complex—working with the right partners simplifies the process:
Consultants and Brokers: These experts can tailor sourcing strategies, verify project quality, manage contracting, and handle retirement logistics.
Verified Marketplaces: Use platforms that offer transparency, verified listings, and registry integration to ensure high-quality purchases.
Before committing, ensure the marketplace provides full traceability, transparent pricing, and access to documentation.
Want to buy good quality I-RECs and carbon credits? Visit Hestiya Marketplace.
